Climate change isn’t just a danger to the environment, it’s a risk to companies that can’t get their response right.
Companies now face crosswinds that include new U.S. Securities and Exchange Commission (SEC) rules, politicized views of the issue, and demands from investors, the public, suppliers and employees—especially younger employees.
“Getting it right in terms of sustainability is critical. It is also not easy,” says Kelley Vendeland, vice president of marketing and sustainability at energy efficiency technology manufacturer Energy Recovery Inc., headquartered in San Leandro, Calif. One key is to make sure you’re in regular discussions with stakeholders to understand their priorities, Vendeland says. Then, look at how those priorities “interact with what management believes is important from a sustainability perspective to meet business goals,” she says.
Pairing stakeholder priorities with business goals that are challenging but achievable is key, instead of throwing out “pie in the sky” promises that will erode trust, Vendeland says.
“If you get it wrong, the biggest risk is you lose trust … with employees,” she says—the very people who generate some of the most innovative ideas on sustainability.
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